Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)

If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change?
A) The equilibrium point will move from E to C. B) The equilibrium point will move from E to A.
C) The equilibrium point will remain at E. D) The equilibrium point will move from E to B.


B

Economics

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